RR No. 14-2023: Further amends the pertinent provisions of RR No. 2-98, as amended, to impose Creditable Withholding Tax on certain income payments by joint ventures/consortiums

Key points

1. Item (V): payments by joint ventures. Income payments by joint ventures, whether incorporated or not, taxable or non-taxable, to local or resident suppliers are subject to Withholding Tax. The rate is One percent (1%) for suppliers of goods and Two percent (2%) for suppliers of services.
2. Item (W): distributive share. The share of each co-venturer or member from the net income of a joint venture or consortium not taxable as a corporation is subject to Fifteen percent (15%). The tax applies before actual or constructive distribution.

Who is affected

• Joint ventures and consortiums, incorporated or not
• Local or resident suppliers of goods and services of joint ventures
• Co-venturers and members of joint ventures not taxable as a corporation